No tax increase proposed for 2025 Arnold budget as officials correct projections

Arnold’s proposed budget for 2025 carries no tax increase for city property owners.

Council voted 4-0 Tuesday to approve a first reading of the city’s tax rate, revenue and expenditures for 2025. Councilman Adam Zweig was absent.

As presented, the city would take in and spend about $4.6 million.

The tax rate would remain at 43.5 mills. It includes 29.36 mills for general city purposes and 14.14 mills for debt service.

City Manager Mario Bellavia said he presented council with a balanced budget after inheriting one that underestimated the city’s expenses and overestimated its revenue.

Bellavia had not been involved in preparing the 2024 budget, which was developed in late 2023 after he was replaced by the previous mayor and council. He was rehired at the start of this year after Mayor Shannon Santucci and the current council took office.

The city started the year with a $282,000 deficit, Bellavia told council in October. He was projecting that to have come down to $131,000.

“Diligent work” by department heads and Santucci helped the city navigate out of the morass, Bellavia said Tuesday.

The biggest win was made in the city’s pension fund, which is fully funded and benefiting from a more aggressive stock portfolio, he said.

In October, Bellavia said there has been an increase in property sales, bringing in more real estate tax revenue. While not enough to change the city’s finances drastically, he called it a step in the right direction.

The city would start and end 2025 with no beginning or ending balance, according to the budget summary.

At nearly $2.1 million, sewage and garbage fees are the city’s single largest revenue source, followed by tax revenue at about $1.9 million.

The city hired its own collector for sewage and garbage fees, and has made great progress collecting on accounts that had been delinquent for years, Santucci said. Bellavia often has said those past-due accounts were a significant drag on the city’s finances.

Sanitation services are the city’s largest expense at about $1.2 million, followed by employee benefits at $861,000 and police at $771,000.

Council will vote on adopting the budget when it meets at 7 p.m. Dec. 10 for its public safety building.